The Eclectic Bar Group has reported its maiden results for the year to December 2013, featuring good trading, positive acquisitions and development, and confidence in continuing profitable progress.
Half Year Highlights
- IPO successfully completed raising £15 million
- Sales up 9.6% at £11.4 million (2012: £10.4 million)
- Company EBITDA before adjusting items (predominantly costs associated with the listing of the company on AIM) was up 13% at £1.7 million (2012: £1.5 million)
- Acquired Coalition in Brighton
- Acquired Coyote Wild in Derby (Lola Lo)
- New lease in Deansgate Locks Manchester opened as the ninth Lola Lo in December
Since the end of the half year Madame Geisha in Brighton has been closed and refurbished as the Company’s first Dirty Blonde which opens 27 March 2014. The Company has also exchanged contracts to acquire Lowlander in Covent Garden (see below). This is an established bar and brasserie business and provides an immediate profit contribution and importantly a food-led brand which can be rolled out nationally over time. The Company has also increased the RCF facility with Barclays Bank from £1.5 to £5 million to give the Group the capacity for further new acquisitions.
Commenting on the results, Reuben Harley, Chief Executive Officer said:
“This has been a very exciting period for Eclectic and we are delighted with the successful listing and the support of our new shareholders. It has also been a busy time within the business with four new sites taken on over the last six months as well as a major refurbishment in Brighton.
“The Manchester Lola Lo site has outperformed sales expectations since opening in December. The newly refurbished Derby site will open in April as the tenth Lola Lo. Our first Dirty Blonde outlet, based on a new “speakeasy” concept, opens this week in Brighton.
“We are also pleased to have acquired the Lowlander business which gives us a brand able to operate throughout the day, led by a quality food and drink offer. We have identified site opportunities across the UK which would suit this type of business building on past experience in restaurants.”
Chief Executive’s Review
Eclectic Bar Group Plc, the leading operator of 20 premium bars located in major towns and cities across the UK, is pleased to announce its maiden set of results following its admission to AIM on the 28th November 2013. As set out in the Company’s Admission Document the strategy is to grow the business through a combination of new site acquisitions and where appropriate development opportunities within its existing estate.
The Eclectic Group trades across its estate under a variety of brands including Embargo 59, Lola Lo, Sakura, Po Na Na and Fez Club, which predominantly targets a customer base of sophisticated students midweek and stylish over 21’s and young professionals at the weekend. The Group focuses on delivering added value for its customers, with premium product ranges, high quality music and entertainment and a commitment to high service standards.
Eclectic’s estate has national geographic spread and is primarily in university towns which provide a vibrant night time economy and the demographics to support premium bars.
New acquisitions and developments
The estate has continued to be developed during the six month period. Eclectic acquired three new venues and began the refit of one existing site:
Coalition Bar in Brighton, Eclectic’s 18th site, was acquired in October 2013. Located in the Kings Road Arches on the sea front, the venue has a large outside terrace on the beach, a 24 hour licence and a capacity of 600. It is open five nights a week, and regularly hosts live music events and headline DJ acts. The enviable location coupled with the large beach terrace gives great opportunities for food, drinks and events.
Coyote Wild in Derby, the company’s 19th venue, was also acquired in October 2013. This freehold site is a listed building on three floors, located in Derby city centre. This site is currently being converted and is set to become the company’s 10th Lola Lo with an opening date set for the first week of April. The new bar will trade six days a week from midday until the early hours. The traditional Lola Lo music mix of credible club classics and contemporary beats will provide night-time entertainment, along with regular club nights and live performances. The “Island Grill” menu is typically tiki and includes big skewers, baskets, hot dogs and the teriyaki-glazed “Big Kahuna” burger. Food presentation styles feature exotic extras such as banana leaves and homemade sauces. Desserts will include Hawaiian Dobash chocolate cake, pineapple upside-down cake and grilled fruit kebabs.
Manchester Deansgate Locks, Eclectic’s 20th site and the ninth Lola Lo, opened in the middle of December on the same stretch as Sakura (which opened on the Locks in October 2010). The 560 capacity venue is on three levels and includes three bars and two DJ booths, together with quirky, value-enhancing features such as a dressing up box in the Voodoo Bar on the lower ground floor and the first shop selling branded T-shirts and all things Tiki – puffer-fish lampshades, books and the brand’s highly-desirable signature cocktail mugs. As with Derby this venue offers food from the “Island Grill” menu featuring a similar food offering to Derby including the appropriately styled “sit by the seashore” menu. The Company has been delighted with the trading performance to date on this venue which has been ahead of expectations.
Madame Geisha in Brighton, which was acquired in March 2013, was closed after Christmas and will launch on 27 March, showcasing Eclectic’s newest “speakeasy” concept, Dirty Blonde. The external appearance of the business will be a pawnbroker’s shop behind which will be two floors of bars and booth seating for drinking and casual dining. The food offering will incorporate dishes from the five boroughs of New York and there will be an extensive range of spirits, champagnes, wines and beers on offer. This venue is scheduled to reopen in the last week of March.
The Company is also pleased to announce that it has exchanged contracts to acquire the Lowlander Grand Café bar and brasserie in Covent Garden, London on 25 March 2014. Lowlander provides an all-day offer with a strong food element. The business is very well established with a strong brand presence in Covent Garden and provides the basis for a national roll out over time. The customer base is in line with the other businesses in the Company and cross-selling opportunities will offer synergy benefits.
Outlook
Eclectic will continue to seek and identify development opportunities across its existing estate to enhance the profitability of the Company. Eclectic operates in a fragmented marketplace with strong potential to grow by site acquisition and there is scope across the UK’s major conurbations for the Company to expand and grow.
The Company has continued to trade well with similar trading patterns to the first half. The Board is confident this profitable progress will continue.